Bloomberg’s New Indices: Gold and Bitcoin’s Awkward Dance

by

Well, well, well! Bloomberg has decided to throw a party for Bitcoin and Gold, and guess what? They’ve launched two new indices that are basically the hipster love child of digital assets and traditional commodities. Meet BBIG and BBUG—because who doesn’t love a good acronym? 🎉

According to their oh-so-serious press release from Feb. 13, these indices are like a buffet where Bitcoin and Gold are the main courses, and the U.S. Dollar is the fancy dessert. BBIG is an equal-weighted index, while BBUG is like that friend who always needs a little extra attention (thanks, Dollar!). And the best part? You can customize these indices like you’re building your own sandwich at a deli. 🥪

Now, let’s get to the juicy bit: the whole idea is to mix Bitcoin’s wild party vibes with Gold’s calm, collected demeanor. Jigna Gibb, the Head of Commodities & Crypto Index Products (yes, that’s a real title), said it best: “We see a fundamental case for using Bitcoin and Gold, not Bitcoin versus Gold.” Because who needs drama when you can have a harmonious investment relationship? 💁‍♀️

And just in time, too! Both Bitcoin and Gold hit record highs in 2024, making investors think, “Hey, maybe these two can be besties after all!” Historically, they’ve had about as much correlation as cats and dogs, but they’ve still managed to deliver some pretty sweet long-term returns. So, BBIG and BBUG might just be the new dynamic duo for your portfolio. 🦸‍♂️🦸‍♀️

But wait, there’s more! Bloomberg isn’t new to the crypto game. They’ve got a whole lineup of indices, including Bitcoin (BTC), Ethereum (ETH), and even the Bloomberg Galaxy Crypto Index (BGCI). It’s like a crypto family reunion, and everyone’s invited! 🎊

Bitcoin and Gold: A Complicated Relationship

As Bloomberg pointed out, Bitcoin and Gold have historically been like that couple who can’t decide if they’re dating or just friends. They’ve had nearly zero correlation, but crypto analyst Daink says that when Gold struts its stuff, Bitcoin tends to follow like a lost puppy. “Each time Gold displaces away from BTC, BTC plays catch up…” he tweeted, probably while sipping a latte. ☕️

Key Notes

– Gold making new ATHs forming HHs and HLs
– $BTC range bounding between 91k – 105k

Each time Gold displaces away from BTC, BTC plays catch up as highlighted in black circles

— Daink (@TraderDaink) February 10, 2025

So, in a nutshell, if Gold decides to take a big leap, Bitcoin might just follow, trying to keep up like a kid chasing after an ice cream truck. The correlation might be as elusive as a good Wi-Fi signal, but give it time, and you might just see them dancing together in perfect harmony. 💃🕺

Read More

2025-02-14 11:17